What an SLA should define
| Area | What to define |
|---|---|
| Cut-off and lead time | When an order must be received to be handled within the agreed time frame. |
| Quality | How mis-picks, damage, stock deviations and claims are measured. |
| Escalation | Who acts when a target is missed, and how quickly the deviation is reported back. |
A practical way to build an SLA:
- List the business-critical service levels.
- Define how each is measured.
- Set a target and tolerance.
- Link each target to a responsible person.
- Agree the meeting and escalation routine.
KPIs that make logistics manageable
Good KPIs show where the logistics flow works and where it needs action. Choose a few measures with a clear definition, data source, owner and linked action.
| KPI | What it shows |
|---|---|
| Order accuracy | The share of orders handled with the right item and quantity. |
| Inventory accuracy | How well the system balance matches the physical stock. |
| Delivery precision / OTIF | The share of deliveries meeting the agreed time and completeness, according to the chosen definition. |
How to set up KPI follow-up:
- Choose 5–8 business-critical KPIs.
- Write an exact definition for each.
- Decide the data source.
- Set a target level.
- Link deviations to actions.
- Follow the trend over time.
Concrete targets and cut-off times are agreed per customer, based on your order profile. More KPI definitions are in the glossary.